Whatever might be the individual goals of the corporations present today, everyone’s ultimate aim is to succeed financially, in where lays not only the growth but also the survivability of the organization. Therefore, every corporation follows unique ways to ensure that they are performing well financially to survive the competition and make it to the forthcoming years, prominently. Of all such ways incorporated, the simple, yet, effective way that can be used to improve the financial benefits of the corporate is by improving the CSR factor.
Yes, when a corporation is socially responsible, it increases its chance of gaining more financial benefits, in the following 3 ways.
Increased business reputation
The reputation of a corporation not only depends on the quality of the products they produce but also on the quality ways incorporated by them to produce the products, of which the social responsibility factor tops the list. Let’s consider the case of ‘The Body Shop’ for that. The success of their products is just not because they are made with quality or variety but also because they are made responsibly, without including any animal testing, which shows CSR is important for boosting the business’ reputation, which in turn boosts the financial benefits aka profits enjoyed by the corporation.
Operational cost savings
When a corporate believes in acting socially responsible and incorporate methods supporting the same, it can gain financial benefit in the name of ‘operational cost savings’. The classic example is the case of PepsiCo. We all are aware, how PepsiCo was constantly criticized for wasting the water resources and how the company decided to put an end to it by following water efficiency policies, this act of social responsibility has resulted not only in increased reputation of the PepsiCo, but also resulted in company saving nearly $80 Million in operational cost, which is nothing but a valuable financial benefit for the corporation!
Improves sales figures
Customers these days are becoming smarter, thanks to the increasing social awareness that encourages them to be responsible for what they do and whom they choose. That is why while choosing an organization’s product or service, a customer’s thought is not only limited to the product’s or service’s price, quality, and, appearance but also is concerned about their ethical value, such as preferring quilt bags over leather bags made of animal skin, preferring cosmetics that are not tested on the animals and so on that shows a responsible act by a company that concerns society and environment can help them earn more money in the name of profits.